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5.1. SR 08-15-2011xl~"7 Supplemental Memo to Items 5.1. & 5.2. MEMORANDUM ver TO: City Council FROM: Jeremy Barnhart DATE: August 15, 2011 SUBJECT: Variance Ordinance and Hendricloc Application -Items 5.1. & 5.2. The Council's review of the draft variance ordinance (5.1 on the agenda) and the appeal of the Hendricks variance (5.2) requires some clarification. Because the City Council had not amended the Ordinance, the Boatrd of Appeals on August 9 reviewed the Hendrickx variance based on the existing standards outlined in Section 30- 635. The Board denied the application because they felt it did not meet all the variance criteria. It is expected that the City Council will approve the variance ordinance amendment (5.1). If this occurs, the Council should either review the variance based on the new criteria, or remand the decision back to the Board of Appeals to allow them to review it based on the new ordinance. If the Council does not approve the variance ordinance amendment, the Council should review the Hendrickx variance based on section 30-635 (found on page three of the staff memo.) N:\Public Bodies\City Council\Council RCA\Agenda Packet\08-15-2011\JB Variance cocer.docx REQUEST FOR ACTION TO ITEM NUMBER Ci Council 5.1. AGENDA SECTION MEETING DATE PREPARED BY Communi Develo went Au st 15, 2011 erem Barnhart, Pla.nnin Mana er ITEM DESCRIPTION REVIEWED By ~. Request by City of Elk River for Ordinance Amendment to Robert Thistle, Interim City ~~` Chapter 30 -Land Development Regulations, Article VI - Administrator Zoning, Division 2, Administration and Enforcement, REVIEWED BY Subdivision II -Appeals and Variances, Case No. V 11-02 - Public Heari ACTION REQUESTED Adopt the draft ordinance amending section 30-635 related to variances. BACKGROUND/DISCUSSION The Minnesota Supreme Court issued a decision on a variance case in June 2010 that, in summary, stated that if a property has a reasonable use, a variance should not be granted. This effectively made variances very difficult to approve, if not impossible, as most properties have some use. For example, a setback variance necessary for a room addition would not be approvable because the property already hosts a house. In response, in 2011 the Minnesota Legislature amended the variance standards, adopting a standard closely resembling the standards in use by Minnesota Counties. The League of Minnesota Cities prepared a draft ordinance for its members' use. The ordinance as drafted incorporates those standards, recommendations by the League, and our own ordinance. The main portion of that document is the cleaned up ordinance. Exhibit A of the attached document shows the strikethroughs and additions of the existing ordinance. The City Attorney reviewed the draft ordinance in late July. The Planning Commission held their review on July 12, 2011 and no concerns were voiced. FINANCIAL IMPACT None ATTACHMENTS ^ Planning Commission staff report ^ Draft ordinance Action Motion by Second by Vote Follow Up N:\Depaztments\Communiry Development\Planning\Case Files\OA\OA 11-03 Ciry of ER -Variances\OA 11-03 Variance to CC 8-15-1 l.docx ~, T c`V°i ,,,r,, REQUEST FOR ACTION ~ Elk. ,.~,.:, Raver TO ITEM NUMBER Plannin Commission 5.5 AGENDA SECTION MEETING DATE PREPARED BY Plannin Items ul 12, 2011 erem Barnhart, P Mans er ITEM DESCRIPTION REVIEWED By Request by City of Elk River for Ordinance Amendment to Chapter 30 -Land Development Regulations, Article VI - REVIEWED BY Zoning, Division 2, Administration and Enforcement, Subdivision 11-Appeals and Variances, Public Hearing -Case No. V I I -02 ACTION REQUESTED Staff recommends approval of the ordinance amendments as drafted. OVERVIEW In June of 2010, the Minnesota Supreme Court made a decision on a variance case, stating in basic terms that if a property has a reasonable use, a variance should not be granted.. This effectively made variances very difficult to approve, if not impossible. In response, the Minnesota Legislature amended the variance standards, adopting a standard closely resembling the standards in use by Minnesota Counties. The proposed ordinance would delete section 30-635 (b) and replace it with the following text: (b) A variance may be granted by the board only if it finds that all of the criteria are met: (1) when they are in ha.rmonq with the general purposes and intent of the ordinance and (2) when the variances are consistent with the comprehensive plan (c) Variances may be granted when .the applicant for the variance establishes that there are Practical Difficulties in complying with the zoning ordinance. (~ "Practical Difficulties," as used in connection with the granting of a variance, means that (1) the property owner proposed to use the property in a reasonable manner not permitted by the zoning ordinance; (2) the plight of the landowner is due to circumstances unique to the property not created bq the landowner; and (3) the variance, if granted, will not alter the essential character of the locality. Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to .direct sunlight for solar energy systems. The board of appeals and adjustments or the governing body as the case may be, may not permit as a variance any use that is not permitted under the ordinance for property in the zone where the affected person's land is located Case File: OA i1-03 Page 2 Variance standards > > > > The bolded text is not part of the ordinance recommended by the League. It is Staffs recommendation to clear up expectations. The full ordinance will be prepared for Council review. ATTACHMENTS ^League of Minnesota Cities cover sheet Action Motion by Second by Vote Follow Up N:\Departments\Community Development\Plarmittg\Case Files\OA\OA 11-03 City of ER -Variances\OA 11-03 Variances staff report to PC 7- 12-11.docx CONNECTING & INNOVATING SINCE 1913 2011 Variance Legislation The changes, which are now in effect, may require some cities to change ordinances or statutory cross-references. After a long and contentious session working to restore city variance authority, the fmal version of HF 52 supported by the League and allies was passed unanimously by the Legislature. On May 5, Gov. Dayton signed 2012 Minnesota Laws, Chapter 29, amending Minnesota Statutes, section 462.357, subdivision 6 to restore municipal variance authority in response to Krummenacher v. City of Minnetonka, 783 N.W.2d 721 (Minn. June 24, 2010). The law also provides consistent statutory language between Minnesota Statutes, chapter 462 and the county variance authority of Minnesota Statutes, section 394.27, subdivision 7. In Krummenacher, the Minnesota Supreme Court narrowly interpreted the statutory defmition of "undue hardship" and held that the "reasonable use" prong of the "undue hardship" test is not whether the proposed use is reasonable, but rather whether there is a reasonable use in the absence of the variance. The new law changes that factor back to the "reasonable manner" understanding that had been used by some lower courts prior to the Krummenacher ruling. The new law was effective on May 6, the day following the governor's approval. Presumably it applies to pending applications, as the general rule is that cities are to apply the law at the time of the decision, rather than at the time of application. Learn More Read more about variances in: The new law renames the municipal variance standard from "undue hardship" to "practical difficulties," but otherwise retains the familiar three-factor test of (1) reasonableness, (2) uniqueness, and (3) essential character. Also included is a sentence new to city variance authority that was already in the county statutes: "Variances shall only be permitted when they are in harmony with the general purposes and intent of the ordinance and when the terms of the variance are consistent with the comprehensive plan." In addition, the new law clarifies that conditions may be imposed on granting of variances if those conditions are directly related to and bear a rough proportionality to the impact created bythe variance. Consult your attorney for advice oonceming specific situations. LEAGUE OF MINNESOTA CITIES ]45 UAIIVERSITYAVE. WEST PxoNE: (651) 281-1200 FAX: {651) 281-1298 INSURANCE TRUST ST. PAUL. MN SS]03-2044 Toa FREE: (800) 925-1122 wea: www.I.irtc.oi~c Land Use Variances: Frequently Asked Questions In evaluating variance requests under the new law, cities should adopt findings addressing the following questions: • Is the variance in harmony with the purposes and intent of the ordinance? • Is the variance consistent with the comprehensive plan? • Does the proposal put property to use in a reasonable manner? • Are there unique circumstances to the property not created by the landowner? • Wili the variance, if granted, alter the essential character of the locality? Some cities may have ordinance provisions that codified the old statutory language, or that have their own set of standards. For those cities, the question may be whether you have to first amend your zoning code before processing variances under the new standard. A credible argument can be made that that the statutory language pre-empts inconsistent Local ordinance provisions. Under a pre-emption theory, cities could apply the new law immediately without necessarily amending their ordinance first. In any regard, it would be best practice for cities to revisit their ordinance provisions and consider adopting language that mirrors the new statute. Attached are a collection of sample documents reflecting the 2011 variance legislation. The attached samples include a draft ordinance, application form, and findings of fact template. While the attached materials may contain provisions that could serve as models in drafting your own documents, your city attorney would need to review prior to council action to tailor to your city's needs. Your city may have different ordinance requirements that need to be accommodated. If you have questions about how your city should approach variances under this new statute, you should discuss it with your city attorney or contact Jed Burkett, LMC land use attorney, at jburkett@,Imc.org or (651) 281-1247, or Tom Grundhoefer, LMC general counsel, at tgrundho@Imc.org or (651) 281-1266. Jed Burkett 06/11 2 Exhibit A I Sec. 30-635..- Variances. (a) ~.___ A variance may be requested only by the owner of the property .(petitioner) to which the variance would apply. A variance may not be granted which would allow the use of property in a manner not permitted within the applicable zoning district, provided that the board may grant a variance for the temporary use of asingle-family '.dwelling as atwo-family dwelling. In granting any variance, the !board may prescribe conditions to ensure substantial compliance with this article and to protect adjacent property, including, without imitation, an expiration date. The violation of any written 'condition shall constitute a violation of this article. No request fora. variance may be resubmitted sooner than six months following a denial. A variance shall become void within two years following issuance unless substantial action has been taken by the petitioner _._ _ in reliance thereon. ~) A variance mar be granted by the board only if it finds that all of the_ following criteria are satisfied: (1)the variance is in harmon~~ with the general purpose and intent of the- 'ordinance. ""'' , . 1 c r 1_ ~ ~ 1 , , (2)the variance is consistent with the comprehensive plan - , ' - crsirrs-ra-aczarc~r~ o~rv ccrzrrrcrce c,rzirc-rtor ~ u {l ll ul. <.l 4/il. LV~ vL111.1 lnllll - -4 =+!. Variances may be granted when the applicant for the variance established- that there are Practical Difficulties in complying with the zoning ~. ordinance. )the property owner proposes to use the property in a reasonable manner not permitted by the zoning ordinance due to setback, lot- coverage, height requirements. ~ ~ ~ - V CC 1l.1 V1Vl_)l.1 LICE (4 2)'1'he special conditions and circumstances are not a conseciuence of the petitioner's own action or inaction. (~ 3) the variance, if granted, will not alter the essential character of the_ localit<~. ,~ (dl Economic considerations alone do not constitute practical difficulties Practical difficulties include. but are not limited to, inadequate access to direct sunli hg t fox solar energy systems. Underlined -added ~i~lgl~ -deleted Bolded -not part of the recommended language from the league ORDINANCE _ _ CITY OF ELK RIVER AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING SECTION 30-635 OF THE ELK RIVER, MINNESOTA, CITY CODE RELATED TO VARIANCES The City Council of the City of Elk River does hereby ordain as follows: Section 1. That Section 30-635 of the City of Elk River Code of Ordinances, titled Variances shallbe amended to read as follows: Sec. 30-635. -Variances. (a) A variance may be requested only by the owner of the property (petitioner) to which the variance would apply. A variance may not be granted which would allow the use of property in a manner not permitted within the applicable zoning district, provided that the board may grant a variance for the temporary use of asingle-family dwelling as atwo-family dwelling. In granting any variance, the board may prescribe conditions to ensure substantial compliance with this article and to protect adjacent property, provided that the conditions are directly related to, and bear a rough proportionality to, the impacts created by the variance. The violation of any written condition shall constitute a violation of this article. No request for a variance may be resubmitted sooner than six months following a denial. A variance shall become void within two years following issuance unless substantial action has been taken by the petitioner in reliance thereon. (b) A variance may be granted by the board if it finds that: (1) the proposed variance is in harmony with the general purpose and intent of the ordinance; and (2) the proposed variance is consistent with the City of Elk River comprehensive plan (c) Variances may be granted when the petitioner establishes that there are Practical Difficulties in complying with the zoning ordinance. Practical Difficulties means that: (1)the petitioner proposes to use the property in a reasonable manner not permitted by the zoning ordinance; (2)The plight of the petitioner is due to circumstances unique to the property not a consequence of the petitioner s own action or inaction; and (3) the variance, if granted, will not alter the essential character of the locality. n:\public bodies\city council\council rca\agenda packet\08-15-2011\variance ordinance draft].docx (d) Economic considerations alone do not constitute practical difficulties. Practical difficulties include, but are not limited to, inadequate access to direct sunlight for solar energy systems. Section 2. That this ordinance shall take effect upon adoption and shall be published as provided by law. Passed and adopted by the City Council of the City of Elk River this 15`" day of August, 2011. John J Dietz, Mayor ATTEST: Tina Allard, City Clerk